From the New York Times:
Investors are hoping for reassuring words from the Federal Reserve. The central bank is widely expected to leave its key rate unchanged at a range of zero to 0.25 percent. Its outlook for the economy, however, is less clear. Gauges of the economy have been improving, but they not yet pointed to actual growth.
Ahhh, Fed Day. It comes around with all the anticipation of Opening Day at Yankee Stadium. The smell of fresh cut grass, the memories of Alan Greenspan being filmed by CNBC so we could guess the move by the girth of his briefcase, even the sounds of prognostication from guests on the Kudlow Report are welcome to my senses on Fed Day.
And the 2 o’clock hour? Oh yes, it will be bananas. The kneejerk reaction, followed by the kneejerk to the kneejerk! Joy! Volatilty! Confusion!
For those not keeping score:
Investors, many of whom have placed bets over the past several months on a late-year economic recovery, are on edge as the second half of 2009 approaches. The Dow Jones industrial average is up 27.1 percent from the 12-year lows reached March 9, but the index has fallen 5.4 percent since June 12.
I’ll be manning my turret today, whiteknuckled and panting for the accompanying statement (as we can assume based on the futures that the rate hike isn’t coming today). I’ll be waiting with baited breath for that cut to Hampton Pearson, standing outside somewhere in DC with the earpiece, poised to deliver the proclamation as though he’s in the Vatican reading the smoke signals for signs of a new Pope.
Nothing can get me down on Fed Day. I’ve got my Geithner jersey on and my Crackerjacks, ready to go. See you at 2:15!